Published
09/02/2025, 13:37In Kyrgyzstan, interest continues to grow in the financial leasing mechanism implemented by the State Mortgage Company. From 2019 to 2024, 893 housing lease agreements with subsequent purchase were concluded through this programme. In fact, this means that almost nine hundred families have already received or are in the process of acquiring their own housing in instalments.
Financial leasing is a long-term instalment plan whereby a family can live in an apartment and gradually buy it out.
Most contracts are concluded under the Menin Uym state programme, which allows buyers to purchase housing on an instalment plan for up to 25 years at 4–8% per annum. In addition, the GIK draws up contracts for up to 15 years at 8-14% to fulfil its obligations to depositors of the subsidiary structure liquidated on 19 April 2024, the Housing Savings Credit Company ‘Narodnaya Zhiznaya Kompaniya’.
The total financial lease debt portfolio at the end of 2024 amounted to 1.87 billion KGS, which is almost twice as much as a year earlier (893.9 million KGS).
Most of the debt, 1.83 billion KGS, consists of payments made on time. At the same time, overdue payments remain insignificant in terms of volume:
The State Mortgage Company is preparing in advance for the possibility that some people may delay payments. To this end, it has set aside almost 1 billion KGS as a kind of ‘safety cushion’ to protect the budget from possible losses.
In addition, the company has calculated how much money families owe it under the agreements concluded. Over the next year — about 183.9 million KGS, over 1-5 years — another 732.4 million KGS, and in the longer term, over 5 years — approximately 2.43 billion KGS.
Simply put, these are all future housing payments that the company should receive from families if they continue to pay on time.
